Ngopini Sawit#8 - National Palm Oil Industrialisation: Reality and Challenges

Background

The palm oil sector is one of the strategic sectors that contributes to the national economy. In 2017, the palm oil sector contributed Rp320 trillion or more than 10% of the state budget. During Covid-19, the value of palm oil exports increased (throughout 2020, the export value of palm oil products grew by 13.6 percent from 2019). The number of workers employed reached 4.43 million in 2020 (provisional figure).

Indonesian Vice President Ma'ruf Amin, at the opening ceremony of the 15th Indonesian Palm Oil Conference (IPOC) 2019, said that the government is committed to improving national palm oil governance. The Vice President also emphasised (quoting President Jojo Widodo's statement in 2018) efforts to develop the palm oil sector through the use of technology, rejuvenation of smallholder palm oil plantations, expansion of export markets, downstreaming of the industry, and implementation of biodiesel. However, there is one root cause of governance that was not mentioned at all, namely the design of national palm oil industrialisation.

One of the main problems in the palm oil sector is the absence of a national palm oil industrialisation plan to guide palm oil management. This has led to an imbalance between palm oil producers (palm oil plantations) and the installed capacity of palm oil-based industries. This imbalance is not only in terms of volume, but also between regions. The palm oil industry has developed according to the whims of major industries and is concentrated in only a few regions. Moreover, oligopoly practices are so commonplace that the industry is not moving towards industrialisation.

Is the current direction of palm oil industrialisation in line with the national palm oil development plan? How is the government addressing the challenges that must be overcome to realise national palm oil industrialisation? To answer these questions, Auriga Nusantara held an online discussion, Ngopini Sawit #8, with the theme ‘National Palm Oil Industrialisation: Reality and Challenges’.

Speaker:

1. Directorate of Food and Agriculture, National Development Planning Agency: National Palm Oil Industrialisation: Reality and Challenges
2. Ministry of Industry: Opportunities and Challenges in Developing the National Downstream Palm Oil Processing Industry
3. Ministry of Agriculture: Strategy for the Development of the Indonesian Palm Oil Industry
4. Indonesian Palm Oil Association (IPOA): The Role of Palm Oil Sector Companies in Improving National Palm Oil Governance
5. Serikat Petani Kelapa Sawit: Smallholders in National Palm Oil Industrialisation

Time and Location

Day and Date: Wednesday, 30 June 2021

Time: 13.30 - 15.30 WIB

Location: Youtube Auriga Nusantara